The recovery in the Asia-Pacific stock markets today is due to the rise in the US stock markets. But it is not possible to single out any individual factors contributing to growth. the markets as a whole are set to positive regardless of the external situation.
The US continues to record a new and growing number of COVID-19 patients every day. So far, the latest records showed an increase of 15 cases, which all came from different states. The country's authorities decided to introduce a new portion of quarantine measures, which should stop the spread of the virus to the extent that was observed in the first wave.
Meanwhile, the inflation rate in China for the first month of summer began to grow due to higher prices for a number of food products. The cost of products, in particular, has become higher due to supply disruptions amid the COVID-19 pandemic. The level of consumer prices in June also jumped immediately by 2.5% on a yearly basis. However, this did not become a catastrophic rise, since a month earlier this indicator also increased in the same range by 2.4%. This has become one of the lowest climbs recorded in more than a year. Analysts' preliminary forecasts were also worse with an expected increase of at least 2.6%.
In June, producer prices went down by 3% on a yearly basis.
China's Shanghai Composite Index climbed 1.33% in the morning. Hong Kong's Hang Seng Index, on the other hand, underwent a negative correction and fell 0.03%.
Japan's Nikkei 225 Index slightly increased by 0.4%. Good statistics are noted in the equipment orders sector. The total volume of contracts became 16.3% less over the year, and the previous decrease was 17.7%. On a monthly basis, the indicator grew by 1.7%, while in the middle of spring a tremendous reduction of 17% was noted. Analysts' preliminary expectations also turned out to be much worse than real numbers: the first and second indicators were expected to decrease by 17.1% and 5.4%, respectively.
The South Korean Kospi index changed in a positive direction noting an increase of 0.56%.
Australia's S & P / ASX 200 Index rose 0.59% to its previous level.
The US stock markets are also experiencing their best moments. Yesterday, an increase was recorded in all major areas. Nasdaq index takes the lead in the growth which again managed to accomplish the impossible and reach a record high against the backdrop of positive dynamics in the technology sector. The increase in the economy leveled out data on a significant increase in the number of COVID-19 cases in the country and the world as a whole.
According to the latest data, the incidence threshold of 3 million people has been crossed in the United States of America. At the same time, an increasing number of states announce new anti-records. In Florida, authorities are already faced with the problem of a shortage of hospital beds.
Despite this, stock markets continue to pretend that this situation does not concern them. Even the fact that market participants are currently experiencing serious stress does not mean at all that it is worth waiting for a collapse in the near future. Investors are inclined to take risks, although part of the assets is still transferred to a safe zone, as evidenced by the growth in ETFs.
The Dow Jones index rose 0.68%, which allowed it to move to the mark of 26,067.28 points. The S&P 500 index jumped 0.78% to reach 3,169.94 points. The Nasdaq index showed a record increase of 1.44%, and its current level was in the range of 10,492.50 points.
The European stock markets are also set for growth, which was observed almost everywhere. The positive dynamics were due to an increase in the quarterly profit of some of the largest enterprises operating in the software sector. This made investors hope for accelerated economic growth.
The UK FTSE index slightly increased by 0.1%. The German DAX index rose more rapidly by 1.3%. The French CAC 40 index also showed growth by 0.4%.
A meeting of finance ministers of the eurozone states is expected to take place. And the next summit of the European Union countries is scheduled for July 17-18. It is on it that the most important and exciting question of all members of the organization will be raised - the budget for several years. The organization of a fund to support and restore the economy of the region will also be discussed. Recall that earlier the total size of the fund was provided in the range of 750 billion euros, or 851 billion dollars, but it was not possible to reach a consensus.
Meanwhile, the extreme need for the existence of such a fund begins to be felt more and more as the economy develops and out of the crisis associated with the coronavirus pandemic. Nevertheless, some experts believe that the European region has already quite successfully overcome difficulties. In support of this, data are provided on the level of GDP, which were revised downward from the initial critical level. Thus, a decrease in the indicator is expected to be within 8.7%, whereas a more significant drop was previously forecasted.
